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JETRO Publishes Survey on Business Operations of Foreign-Affiliated Companies in Japan – Japan Industry News

JETRO has revealed the outcomes of a survey carried out of 6,607 foreign-affiliated firms based mostly in Japan from October to November 2022.
The objective of the survey is to understand the present standing and developments of foreign-affiliated firms based mostly in Japan, the attractiveness and challenges of the enterprise setting in Japan, and the help wanted, in addition to to arrange information used for efficient FDI promotion tasks and for reference to enhance enterprise setting and for associated measures.

Based on this goal, the survey scope was expanded to all foreign-affiliated firms in Japan from JETRO-supported firms solely, final 12 months. This is the second such survey and obtained legitimate responses from 1,348 firms (legitimate response charge: 20.4%).

Key Findings

1.Business growth in Japan sooner or later

  • About half of respondents report gross sales improve in comparison with the earlier 12 months, indicating a transparent restoration pattern.
  • 56.1% intend to “strengthen or expand” their enterprise in Japan sooner or later, up 3.5 factors from the earlier survey.
  • Intentions to determine new bases/strengthen current bases additionally elevated from the earlier survey, indicating an upward drive.

2.Attractiveness and challenges of the enterprise setting in Japan

  • The most engaging characteristic of Japan chosen was its “market scale,” whereas “clustering/presence of customer and related industries” was the very best for the manufacturing business.
  • Companies whose father or mother firms have solely lately been established and firms which have lately entered the Japanese market have a tendency to think about medium-to long-term development potential in their very own enterprise fields as enticing.
  • Simplification/digitalization of administrative procedures and communication in international languages noticed enchancment lately.
    Expectations are notably excessive for enchancment of setting relating to “securing human sources.

3.Securing human sources and facilitating the employment and residence of worldwide personnel

  • While hiring Japanese mid-career employees is the mainstream, the intention to rent worldwide college students are noticed particularly amongst Asian firms.
  • “IT/technical personnel” and “sales/marketing personnel” have been cited tough to safe. Lack of international language expertise resembling English is a bottleneck.
  • Simplification/digitization of administrative procedures and leisure of standing of residence have been most cited in an effort to facilitate clean employment and residence of wonderful international human sources.

4.Collaboration/Cooperation and its Enhancement

  • 33.0% are implementing or contemplating collaboration/cooperation with Japanese companions, by which particularly prescription drugs, cosmetics, and data and communication industries are displaying considerably proactive engagement.
  • Many firms search know-how and R&D capabilities of collaboration/cooperation companions, and have excessive expectations for these capacities from Japanese firms and universities.
  • Challenges differ relying on the standing of collaboration/cooperation, and help is required in keeping with the stage.

Download the survey right here.

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